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http://www.businessinsider.com/mens-wearhouse-to-buy-jos-a-bank-2014-3Men's Wearhouse To Buy Jos. A. Bank For $1.8 Billion http://www.businessinsider.com/mens-wearhouse-to-buy-jos-a-bank-2014-3
Tue, 11 Mar 2014 12:11:00 -0400Ashley Lutz
<p><img style="float:right;" src="http://static2.businessinsider.com/image/531f355069bedd207825f0bf-480-/suits-5.jpg" border="0" alt="suits" width="480" /></p><p>Men's Wearhouse is going to buy Jos. A. Bank for $65 per share in cash, or $1.8 billion.&nbsp;</p>
<p>The acquisition comes after months of hostile negotiations between the companies.&nbsp;</p>
<p>"Together, Men's Wearhouse and Jos. A. Bank will have more than 1,700 stores in the U.S., with approximately 23,000 employees and sales of $3.5 billion," the companies <a href="http://seekingalpha.com/pr/9230803-mens-wearhouse-to-acquire-jos-a-bank-for-65_00-per-share-in-cash">said in a news release</a>.&nbsp;</p>
<p>Men's Wearhouse will not rebrand or rename Jos. A. Bank, and storefronts will remain intact.&nbsp;</p>
<p><span style="line-height: 1.5em;">Jos. A. Bank also said in the release that it has terminated plans to acquire Eddie Bauer.&nbsp;</span></p>
<p><span style="line-height: 1.5em;">Here's the full release:&nbsp;</span></p>
<p><span class="location">FREMONT, Calif.</span>&nbsp;and&nbsp;<span class="location">HAMPSTEAD, Md.</span>, March 11, 2014 /PRNewswire/ --&nbsp;<span class="org">The Men's Wearhouse</span>&nbsp;(NYSE: MW) and Jos. A. Bank Clothiers (<a href="http://seekingalpha.com/symbol/josb">JOSB</a>) today announced that they have entered into a definitive agreement under which Men's Wearhouse (<a href="http://seekingalpha.com/symbol/mw">MW</a>) will acquire all of the outstanding shares of common stock of Jos. A. Bank for $65.00 per share in cash, or total consideration of $1.8 billion.&nbsp; The boards of directors of both companies have unanimously approved the transaction.&nbsp;</p>
<p>Together, Men's Wearhouse and Jos. A. Bank will have more than 1,700 stores in the U.S., with approximately 23,000 employees and sales of $3.5 billion on a pro forma basis.&nbsp;</p>
<p>"We are pleased to have reached this agreement with Jos. A. Bank, which we believe will deliver substantial benefits to our respective shareholders, employees and customers," said&nbsp;<span class="person">Doug Ewert</span>, President and Chief Executive Officer of Men's Wearhouse.&nbsp; "Together, Men's Wearhouse and Jos. A. Bank will have increased scale and breadth, and Jos. A. Bank's strong brand and complementary business model will broaden our customer reach.&nbsp; We expect the transaction will be accretive to&nbsp;<span class="org">Men's Wearhouse's</span>&nbsp;earnings in the first full year."</p>
<p><span class="person">Mr. Ewert</span>&nbsp;continued, "The combined company will have the operational flexibility to successfully execute on strategic plans at both brands.&nbsp; We are excited by the opportunities this transaction presents and are confident that our combined best-in-class offerings for our valued customers will drive significant shareholder value.&nbsp; All of us at Men's Wearhouse have great respect for the Jos. A. Bank management team and are eager to work with Jos. A. Bank's talented employees.&nbsp; I am confident that, together, we will create a truly great company for all of our stakeholders.&amp;quot;</p>
<p><span class="person">Robert N. Wildrick</span>, Chairman of the&nbsp;<span class="org">Board of Jos</span>. A. Bank, said, "Our Board has been rigorously focused on pursuing a path for our shareholders that maximizes value creation.&nbsp; We have been committed to pursuing a range of strategic alternatives to achieve that goal. The transaction we are announcing today clearly reflects the success of our efforts, providing a substantial premium over any price at which our stock has ever traded, including a 56% premium since our interest in Men's Wearhouse became public last October, and allowing our shareholders to receive immediate consideration for their holdings.&nbsp; On behalf of our Board and management team, I would like to express our deep appreciation to our employees for their hard work in making Jos. A. Bank the great company it is today.&nbsp; We look forward to working together with Men's Wearhouse to ensure a smooth transition.&amp;quot;</p>
<p>Strategic and Financial Benefits of the Combination</p>
<ul>
<li>Provides compelling value for both companies' shareholders: The combination provides Jos. A. Bank's shareholders immediate liquidity and substantial value for their investment. &nbsp;The transaction represents a 65% premium over Jos. A. Bank's unaffected enterprise value and a 56% premium over Jos. A. Bank's closing share price on October 8, 2013, the day prior to the public announcement of Jos. A. Bank's proposal to acquire Men's Wearhouse.&nbsp; Further, the transaction represents a 10x enterprise value to last twelve months ("LTM") Adjusted EBITDA[1]&nbsp; multiple (assuming an estimated $137 million of Adjusted EBITDA for Jos. A. Bank's fiscal 2013 ending February 1, 2014).[2]&nbsp;&nbsp;<br /><br />Men's Wearhouse shareholders will benefit from approximately $100 to $150 million of run-rate annual synergies realized over three years, through improving purchasing efficiencies, optimizing customer service and marketing practices, and streamlining duplicative corporate functions. &nbsp;Additionally,&nbsp;<span class="org">Men's Wearhouse's</span>&nbsp;vertical direct sourcing model will be leveraged to improve combined merchandising and sourcing across the combined company and rationalize inventory over time.&nbsp;&nbsp;<br /><br /></li>
<li>Combined company positioned to succeed:&nbsp; The combined company will be the fourth largest U.S. men's apparel retailer with pro forma sales of approximately $3.5 billion.&nbsp; This transaction brings together a high-value collection of national and owned brands. &nbsp;Building on the two companies' complementary business models, the combined company will better serve an expanded customer base in more locations and optimize merchandising and sourcing capabilities.&nbsp;&nbsp;<br /><br /></li>
<li>Smooth transition expected: Men's Wearhouse and Jos. A. Bank expect a smooth integration, as there will be no rebranding or remodels required Jos. A. Bank's store banner will remain in place.&nbsp; In addition,&nbsp;<span class="org">the Men's Wearhouse</span>&nbsp;management team has a proven track record of successful acquisitions, having integrated approximately 600 stores and over 7,000 employees in connection with its previous acquisitions of&nbsp;<span class="person">Joseph Abboud</span>, After Hours and Moores.&nbsp; Men's Wearhouse expects to implement the best practices of both companies to drive further operational and financial success. Management will consist of the most qualified individuals from both organizations.</li>
</ul>
<p>Terms of the Transaction</p>
<p>Men's Wearhouse will acquire Jos. A. Bank for approximately $1.8 billion in cash.&nbsp; Today, Men's Wearhouse announced that it has extended the expiration date of its tender offer to 5:00 p.m.,&nbsp;<span class="location">New York City</span>&nbsp;time, on Wednesday, March 19, 2014, unless extended.&nbsp; Men's Wearhouse will amend its pending tender offer prior to that expiration date in accordance with, and to reflect, the terms of the Merger Agreement, including to reflect the increase in the purchase price to be offered to $65.00 per share and other changes contemplated by the Merger Agreement between Men's Wearhouse and Jos. A. Bank.</p>
<p>Jos. A. Bank's Board of Directors unanimously determined that the definitive merger agreement with Men's Wearhouse and the terms of&nbsp;<span class="org">the Men's Wearhouse</span>&nbsp;tender offer are fair to and in the best interests of Jos. A. Bank and its shareholders, and recommends that Jos. A. Bank shareholders tender their Jos. A. Bank shares to Men's Wearhouse. Jos. A. Bank will amend its Schedule 14D-9 previously filed with the&nbsp;<span class="org">Securities and Exchange Commission</span>to reflect the recommendation of its Board of Directors. The transaction is subject to certain closing conditions, including the valid tender of sufficient shares, which, when added to shares owned by Men's Wearhouse and its affiliates, constitute a majority of the total number of common shares outstanding on a fully-diluted basis. Any shares not tendered in the offer will be acquired in a second step merger at the same cash price as in the tender offer.&nbsp;</p>
<p>In conjunction with this transaction, Jos. A. Bank has terminated its agreement to acquire&nbsp;<span class="org">Everest Holdings LLC</span>, the parent company of Eddie Bauer.&nbsp; As a result of the termination of its agreement to purchase&nbsp;<span class="org">Everest Holdings LLC</span>, the terms and conditions of the offer were not satisfied. Effective immediately, Jos. A. Bank is also withdrawing its previously announced tender offer to purchase for cash up to $300 million in value of its common stock.</p>
<p>Financing and Approvals</p>
<p><span class="org">The Men's Wearhouse</span>&nbsp;tender offer is not conditioned on financing, and the Company expects to finance the transaction with a combination of balance sheet cash and committed debt financing from&nbsp;<span class="org">BofA Merrill Lynch</span>&nbsp;and JPMorgan Chase Bank (<a href="http://seekingalpha.com/symbol/jpkcz">JPKCZ</a>), N.A.&nbsp; The strong free cash flow generated by the combined company is expected to enable rapid deleveraging.</p>
<p>The transaction, which is expected to close by the third quarter of 2014, is subject to satisfaction of customary closing conditions, including expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Act.&nbsp; Both Men's Wearhouse and Jos. A. Bank are working cooperatively with the&nbsp;<span class="org">Federal Trade Commission</span>&nbsp;to obtain approval of the transaction as soon as possible.</p>
<p>Advisors</p>
<p><span class="org">BofA Merrill Lynch</span>&nbsp;and&nbsp;<span class="org">J.P. Morgan Securities LLC</span>&nbsp;are serving as financial advisors to Men's Wearhouse, and&nbsp;<span class="org">Willkie Farr &amp; Gallagher LLP</span>&nbsp;is serving as legal advisor.&nbsp;</p>
<p>Goldman, Sachs &amp; Co. and&nbsp;<span class="org">Financo, LLC</span>&nbsp;are serving as financial advisors to Jos. A. Bank, and&nbsp;<span class="org">Skadden, Arps, Slate, Meagher &amp; Flom LLP</span>&nbsp;and&nbsp;<span class="org">Guilfoil Petzall &amp; Shoemake, L.L.C.</span>&nbsp;are serving as its legal advisors.</p>
<p>About Men's Wearhouse</p>
<p>Founded in 1973, Men's Wearhouse is one of&nbsp;<span class="location">North America's</span>&nbsp;largest specialty retailers of men's apparel with 1,124 stores.&nbsp;&nbsp;<span class="org">The Men's Wearhouse</span>, Moores and K&amp;G stores carry a full selection of suits, sport coats, furnishings and accessories in exclusive and non-exclusive merchandise brands and Men's Wearhouse and Tux stores carry a limited selection.&nbsp; Most K&amp;amp;G stores carry a full selection of women's apparel.&nbsp; Tuxedo rentals are available in&nbsp;<span class="org">the Men's Wearhouse</span>, Moores and Men's Wearhouse and Tux stores.&nbsp; Additionally, Men's Wearhouse operates a global corporate apparel and workwear group consisting of Twin Hill in&nbsp;<span class="location">the United States</span>&nbsp;and Dimensions, Alexandra and Yaffy in the United Kingdom.&nbsp; Investors can find additional information at<a href="http://ir.menswearhouse.com/">http://ir.menswearhouse.com/</a>.</p>
<p>About Jos. A. Bank</p>
<p>Jos. A. Bank Clothiers, Inc., established in 1905, is one of the nation's leading designers, manufacturers and retailers of men's classically-styled tailored and casual clothing, sportswear, footwear and accessories. The Company sells its full product line through 629 stores in 44 states and the&nbsp;<span class="location">District of Columbia</span>, a nationwide catalog and an e-commerce website that can be accessed at<a href="http://www.josbank.com/">http://www.josbank.com/</a>. The Company is headquartered in&nbsp;<span class="location">Hampstead, Md.</span>, and its common stock is listed on the NASDAQ under the symbol "JOSB."</p>
<p>ADDITIONAL INFORMATION</p>
<p>On January 6, 2014,&nbsp;<span class="org">Java Corp.</span>&nbsp;("Purchaser"), a wholly owned subsidiary of<span class="org">The Men's Wearhouse, Inc.</span>, commenced a cash tender offer for all outstanding shares of common stock of Jos. A. Bank Clothiers, Inc. not already owned by Men's Wearhouse or any of its subsidiaries, subject to the terms and conditions set forth in the Amended and Restated Offer to Purchase dated as of February 24, 2014 (the &amp;quot;Offer to Purchase&amp;quot;). &nbsp;Today, Men's Wearhouse announced that it has extended the expiration date to the tender offer to&nbsp; 5:00 p.m.,&nbsp;<span class="location">New York City</span>&nbsp;time, on March 19, 2014, unless further extended in the manner set forth in the Offer to Purchase.&nbsp; Men's Wearhouse will amend its pending tender offer prior to that expiration date in accordance with, and to reflect, the terms of the Merger Agreement, including to reflect the increase in the purchase price to be offered to $65.00 per share and other changes contemplated by the Merger Agreement between Men's Wearhouse,&nbsp;<span class="org">Java Corp.</span>&nbsp;and Jos. A. Bank.</p>
<p>This communication does not constitute an offer to buy or solicitation of an offer to sell any securities. This communication is for informational purposes only.&nbsp; The tender offer is not being made to, nor will tenders be accepted from, or on behalf of, holders of shares in any jurisdiction in which the making of the tender offer or the acceptance thereof would not comply with the laws of that jurisdiction.&nbsp; The tender offer is being made pursuant to a tender offer statement on Schedule TO (including the Offer to Purchase, a related letter of transmittal and other offer materials) filed by Men's Wearhouse and the Purchaser with the&nbsp;<span class="org">U.S. Securities and Exchange Commission</span>&nbsp;("SEC (<a href="http://seekingalpha.com/symbol/scur">SCUR</a>)&amp;quot;) on January 6, 2014, as amended from time to time. INVESTORS AND SECURITY HOLDERS OF JOS. A. BANK ARE URGED TO READ THESE AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE TENDER OFFER. Investors and security holders can obtain free copies of these documents and other documents filed with the SEC by Men's Wearhouse through the web site maintained by the SEC at&nbsp;<a href="http://www.sec.gov/">http://www.sec.gov</a>.&nbsp; The Offer to Purchase Letter of Transmittal and other offering documents may also be obtained for free by contacting the Information Agent for the tender offer,&nbsp;<span class="org">MacKenzie Partners, Inc.</span>, at 212-929-5500 or toll-free at 800-322-2885.</p>
<p>In response to the amended tender offer by&nbsp;<span class="org">The Men's Wearhouse, Inc.</span>, through its wholly owned subsidiary,&nbsp;<span class="org">Java Corp.</span>, Jos. A. Bank will file an amendment to its solicitation/recommendation statement on Schedule 14D-9 with the SEC. Any solicitation/recommendation statement filed by Jos. A. Bank &nbsp;that is required to be mailed to stockholders will be mailed to stockholders of Jos. A. Bank. INVESTORS AND STOCKHOLDERS OF JOS. A. BANK ARE URGED TO READ THE SOLICITATION / RECOMMENDATION STATEMENT AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and stockholders may obtain free copies of the solicitation/recommendation statement and other documents (when available) filed with the SEC by Jos. A. Bank free of charge through the website maintained by the SEC at&nbsp;<a href="http://www.sec.gov/">www.sec.gov</a>. In addition, the solicitation/recommendation statement and other materials related to&nbsp;<span class="org">Men's Wearhouse's</span>&nbsp;proposal may be obtained from Jos. A. Bank free of charge by directing a request to the Company's Investor Relations Department, Jos. A. Bank Clothiers, Inc.,&nbsp;<span class="location">500 Hanover Pike</span>, Hampstead,MD 21074, 410.239.5900</p>
<p>NON-GAAP MEASUREMENTS</p>
<p>This press release includes non-GAAP financial measures. Jos. A. Bank and Men's Wearhouse are presenting EBITDA with respect to Jos. A. Bank which is a non-GAAP financial measure. Jos. A. Bank and Men's Wearhouse believe presentation of this non-GAAP financial measure is (i) helpful to management in evaluating the proposed transaction and (ii) useful to investors in connection with their financial analysis. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, results prepared in accordance with GAAP. For a description of how Jos. A. Bank and Men's Wearhouse reconcile these non-GAAP financial measures to net income, please see the appendix to this press release.</p>
<p>FORWARD-LOOKING STATEMENT AND OTHER IMPORTANT INFORMATION</p>
<p>Jos. A. Bank and Men's Wearhouse obtained or created certain information used in this press release from research, surveys or studies conducted by third parties, information provided by customers, and industry or general publications. Industry publications and surveys generally state that they have obtained information from sources believed to be reliable but do not guarantee the accuracy and completeness of such information. We have not independently verified the information and data in such research, surveys, studies, information and publications, and we do not make any representation as to the accuracy of such information. This press release contains forward-looking statements and information about our current and future prospects and our operations and financial results, which are based on currently available information. The forward-looking statements include assumptions about our operations, such as cost control, market conditions, liquidity and financial condition.</p>
<p>These forward-looking statements are based upon management's current beliefs or expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies and third-party approvals, many of which are beyond our control.&nbsp; The following factors, among others, could cause actual results to differ materially from those expressed or implied in the forward-looking statements:&nbsp; (1)&nbsp;the occurrence of any event, change or other circumstances that could give rise to the termination of the Agreement and Plan of Merger by and among Men's Wearhouse, Inc.,&nbsp;&nbsp;<span class="org">Java Corp.</span>&nbsp;and Jos. A. Bank Clothiers, Inc., (2) the failure to consummate the acquisition of Jos. A. Bank for reasons including that the conditions to&nbsp;<span class="org">Men's Wearhouse's</span>&nbsp;offer to purchase all outstanding shares of Jos. A. Bank's common stock, including the condition that a minimum number of shares be tendered and not withdrawn, are not satisfied or waived by Men's Wearhouse, (3) the possibility that the expected benefits from the proposed transaction will not be realized within the anticipated time period, (4) the risk that regulatory or other approvals required for the transaction are not obtained, (5) the risks related to the costs and difficulties related to the integration of Jos. A. Bank's business and operations with&nbsp;<span class="org">Men's Wearhouse's</span>business and operations, (6) the inability to obtain, or delays in obtaining, cost savings and synergies from the transaction, (7) unexpected costs, charges or expenses resulting from the transaction, (8) litigation relating to the transaction, (9) the inability to retain key personnel and (10) the possible disruption that may be caused by the transaction to the business and operations of Men's Wearhouse and its relationships with customers, employees and other third parties.</p>
<p>The forward-looking statements in this press release speak only as of the date hereof. Except for the ongoing obligations of Men's Wearhouse and Jos. A. Bank to disclose material information under the federal securities laws, neither Men's Wearhouse nor Jos. A. Bank undertakes any obligation to revise or update publicly any forward-looking statement, whether as a result of new information, the occurrence of certain events or otherwise, except as required by law.&nbsp; Other factors that may impact the forward-looking statements can be found in&nbsp;<span class="org">Men's Wearhouse's</span>&nbsp;and Jos. A. Bank's respective filings with the SEC.&nbsp; Please read the "Risk Factors" and other cautionary statements contained in those filings. As a result of these risks and others, actual results could vary significantly from those anticipated in this press release, and&nbsp;<span class="org">Men's Wearhouse's</span>&nbsp;and Jos. A. Bank's financial condition and results of operations could be materially adversely affected. For additional information on Men's Wearhouse, please visit the Company's websites at&nbsp;<a href="http://www.menswearhouse.com/">www.menswearhouse.com</a>,&nbsp;<a href="http://www.mooresclothing.com/">www.mooresclothing.com</a>,&nbsp;<a href="http://www.kgstores.com/">www.kgstores.com</a>,<a href="http://www.twinhill.com/">www.twinhill.com</a>,&nbsp;<a href="http://www.dimensions.co.uk/">www.dimensions.co.uk</a>&nbsp;and&nbsp;<a href="http://www.alexandra.co.uk/">www.alexandra.co.uk</a>.&nbsp; For additional information on Jos. A. Bank, please visit&nbsp;<a href="http://www.josbank.com/">www.josbank.com</a>.</p>
<p>Jos. A. Bank is not accepting for payment any shares that have been tendered, and such shares will be returned, without expense, to holders who have tendered such shares (or, in the case of shares tendered by book-entry transfer through the DTC, such shares will be credited to the appropriate account maintained with the DTC). The tender offer consideration of $65.00 in connection with the Eddie Bauer (<a href="http://seekingalpha.com/symbol/ebhi">EBHI</a>) transaction will not be paid or become payable to any holders of shares pursuant to the offer by Jos. A. Bank&nbsp; Under no circumstances should shares be tendered to the Jos. A. Bank or DTC and, if tendered, such shares will not be accepted and will be promptly returned to the tendering shareholder.</p>
<p><span style="line-height: 1.5em;">&nbsp;</span></p><p><a href="http://www.businessinsider.com/mens-wearhouse-to-buy-jos-a-bank-2014-3#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/mens-wearhouse-bids-for-jos-a-bank-2013-11After Taking 'Poison Pill,' Men's Wearhouse Bids For Jos. A. Bank In A Corporate 'Pac-Man Defense' (MW, JOSB)http://www.businessinsider.com/mens-wearhouse-bids-for-jos-a-bank-2013-11
Tue, 26 Nov 2013 12:09:09 -0500Aditi Shrivastava
<p><img style="float:right;" src="http://static2.businessinsider.com/image/5294d533eab8eab17ddaa655-480-/jos-a-bank-6.jpg" border="0" alt="jos a bank" width="480" /></p><p>(Reuters) - Men's Wearhouse Inc &lt;MW.N&gt; struck back at Jos. A. Bank Clothiers Inc &lt;JOSB.O&gt; with a $1.5 billion bid to acquire the suit and tuxedo retailer, only weeks after rejecting a takeover offer from its smaller rival.</p>
<p>Men's Wearhouse, under pressure from activist shareholders to merge, offered $55 per share in cash for Jos. A. Bank, an unusual counter-offer that values the smaller retailer's stock at a 9 percent premium to its close on Monday.</p>
<p>Jos. A. Bank's shares rose as much as 12 percent on Tuesday to a two-and-a-half year high of $56.91, topping the offer in a sign investors might be expecting a higher bid. Men's Wearhouse shares rose as much as 7 percent to a year-high.</p>
<p>"For the shareholders of Men's Warehouse and for Joseph A. Bank, Christmas has come early. They will see huge benefits to the merging of these two companies," said Jerry Reisman, an M&amp;A expert at law firm Reisman Peirez Reisman and Capobianco LLP.</p>
<p>The combined company would have 1,700 stores that hire tuxedos and sell suits, a scale that has in the past raised antitrust questions about a merger.</p>
<p>The retaliatory offer from Men's Wearhouse, which the company says implies an enterprise value of about $1.2 billion for Jos. A. Bank, follows pressure from its largest shareholder, New York-based hedge fund Eminence Capital LLC.</p>
<p>Eminence, along with other hedge funds that hold about 30 percent of Men's Wearhouse shares, had tried to persuade other investors to pressure the company into accepting the takeover offer from Jos. A. Bank.</p>
<p>"We are pleased to see that the board of Men's Wearhouse agrees with us and recognizes the substantial benefits of merging with Jos. A. Bank," said Eminence Capital Chief Executive Ricky Sandler.</p>
<p>The last person to push Men's Wearhouse to sell itself was its founder, George Zimmer, known to U.S. television audiences for his advertising catch phrase, "You're gonna like the way you look - I guarantee it".</p>
<p>Zimmer was ousted by the board in June after arguing for a sale of the company to an investment group. At the time, he accused the board of trying to silence him for expressing concerns about the direction of a company he founded 40 years ago.</p>
<p>Jos. A. Bank was not immediately available for comment. As of August 3, the company had cash and cash equivalents of about $333.2 million and no long-term debt.</p>
<p>PAC-MAN DEFENSE</p>
<p>The unusual tactic of a target firm turning around to try and buy a previous suitor is known as a Pac-Man defense, named after a 1980s video game where Pac-Man turns on the ghosts trying to kill him.</p>
<p>Men's Wearhouse swiftly rebuffed Jos. A. Bank's offer in October to buy it for $2.3 billion, or $48 per share. Jos. A. Bank walked away from the bid on November 15, although it did not rule out another bid.</p>
<p>In a statement on Tuesday, Men's Wearhouse said it had the "advantage in scale, growth and performance" to combine the two chains.</p>
<p>"We believe we are the right acquirer for this combination and that our experienced management team is best positioned to execute the integration of our companies," said Bill Sechrest, lead director of the board of Men's Wearhouse.</p>
<p>Men's Wearhouse, based in Fremont, California, operates more than 1,100 stores under the Men's Wearhouse, Moores and K&amp;G banners.</p>
<p>Jos. A. Bank, a century-old seller of men's tailored and casual clothing, has more than 600 stores in the United States.</p>
<p>"Men's Wearhouse's leadership was not only personally offended by the efforts of Jos A. Bank to try to take them over, but they see this as an opportunity to strengthen their business by eliminating the competition," said Reisman.</p>
<p>After rejecting the October offer, Men's Wearhouse also adopted a poison pill to prevent a hostile takeover.</p>
<p>It also said at the time that a combination of the two companies raised anti-trust issues.</p>
<p>Men's Wearhouse shares were trading up 5.5 percent at $49.72 on the New York Stock Exchange.</p>
<p>(Additional reporting by Olivia Oran; Writing by Robin Paxton; Editing by Rodney Joyce)</p><p><a href="http://www.businessinsider.com/mens-wearhouse-bids-for-jos-a-bank-2013-11#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/why-mens-wearhouse-needs-jos-a-bank-2013-10Why Men's Wearhouse Could Benefit From A Jos. A. Bank Takeover http://www.businessinsider.com/why-mens-wearhouse-needs-jos-a-bank-2013-10
Wed, 09 Oct 2013 10:19:14 -0400Ashley Lutz
<p><img style="float:right;" src="http://static1.businessinsider.com/image/525563d9eab8eabb6000e447-480-/ties-mens-fashion-suits-2.jpg" border="0" alt="ties, men's fashion, suits" width="480" /></p><p>Men's Wearhouse has <a href="http://www.marketwatch.com/story/mens-wearhouse-rejects-jos-a-banks-bid-2013-10-09-9911557?siteid=yhoof2">rejected Jos. A. Bank's offer</a> to buy the company for $2.3 billion, saying that the deal "significantly undervalues Men's Wearhouse."</p>
<p>The merger would have created a men's apparel powerhouse and revived Men's Wearhouse, <a href="http://www.businessinsider.com/mens-wearhouse-reports-sales-are-down-2013-9">which has struggled since the ouster of founder George Zimmer</a> in June, said Brian Sozzi, chief equities strategy at Belus Capital.&nbsp;</p>
<p>"<span>Men's Wearhouse would be absolutely silly not to take the money and run," Sozzi said. "The company is not a growth retailer."</span></p>
<p>It's clear that Jos. A. Bank is beating Men's Wearhouse in the fierce competition for customers.&nbsp;</p>
<p>Jos. A Bank's shares have gained more than 8% in the past six months, while Men's Wearhouse only gained 1.6%.&nbsp;</p>
<p>And while Men's Wearhouse <a href="http://www.businessinsider.com/mens-wearhouse-reports-sales-are-down-2013-9">reported a disappointing outlook</a> for future months, Jos. A. Bank executives <a href="http://seekingalpha.com/article/1676362-jos-a-bank-clothiers-management-discusses-q2-2013-results-earnings-call-transcript">recently said that</a> sales are increasing.&nbsp;</p>
<p>So what does Jos. A. Bank have that Men's Wearhouse doesn't?&nbsp;</p>
<p>Those infamous "buy one, get seven free" sales.&nbsp;</p>
<p>"Those promotions are why Jos. A. Bank is getting foot traffic that Men's Wearhouse isn't,"&nbsp;<a href="http://www.linkedin.com/pub/brian-pitera/5/a3b/650">Brian Pitera</a>, a principal of consultancy at A.T. Kearney, <a href="http://www.businessinsider.com/jos-a-bank-is-dominating-mens-wearhouse-2013-9">told us last month</a>. "To compete, Men's Wearhouse is going to have to step up promotions and advertising."&nbsp;</p>
<p><span></span>While Jos. A. Bank's promotions sound too good to be true, the brand actually <a href="http://www.businessinsider.com/jos-a-bank-business-model-2012-11">manages to make money</a> by selling the products at higher initial mark-ups than necessary. In other words, Jos. A. Bank builds the cost of free products into the one full-priced suit you purchase.&nbsp;</p>
<p>Sozzi said the deal might still happen.&nbsp;</p>
<p><span>"This was not so some fly by night, hastily put together deal," Sozzi said. "This is something that Jos A. Bank has clearly been working on for a while and they could sweeten the deal a bit."&nbsp;</span></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/best-return-policies-in-retail-2013-9" >10 Retailers That Will Let You Return Anything</a></strong></p>
<p><a href="http://www.businessinsider.com/why-mens-wearhouse-needs-jos-a-bank-2013-10#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/jos-a-bank-to-acquire-mens-wearhouse-2013-10Jos A Bank Wants To Buy Men's Wearhouse (JOSB, MW)http://www.businessinsider.com/jos-a-bank-to-acquire-mens-wearhouse-2013-10
Wed, 09 Oct 2013 06:57:49 -0400Sakthi Prasad
<p><img style="float:right;" src="http://static3.businessinsider.com/image/50b9245669bedd2e1f00000d-480-/screen%20shot%202012-11-30%20at%204.25.08%20pm.png" border="0" alt="jos a bank" width="480" /></p><p>(Reuters) - Jos. A. Bank Clothiers Inc &lt;JOSB.O&gt; has proposed to buy bigger rival Men's Wearhouse Inc &lt;MW.N&gt; for about $2.3 billion to create a men's apparel heavyweight with more than 1,700 stores.</p>
<p>The $48 per share all-cash offer is a 36 percent premium to the closing price of Men's Wearhouse common stock on Tuesday.</p>
<p>Jos. A. Bank said Men's Wearhouse was reviewing the proposal, which it announced early on Wednesday.</p>
<p>The deal, which would be funded by a combination of cash-on-hand, new equity capital and debt, would "immediately and significantly" add to Jos. A. Bank's earnings, the company said.</p>
<p>Jos. A. Bank is partnering with Golden Gate Capital, which will make a $250 million equity investment in the company.</p>
<p>Men's Wearhouse has a market value of about $1.68 billion, compared with Jos. A. Bank's $1.17 billion.</p>
<p>Jos. A. Bank said in June it was considering strategic opportunities to enhance shareholder value, including acquisitions.</p>
<p>Jos. A. Bank, with more than 600 stores, is a century-old seller of men's tailored and casual clothing, according to its website. Men's Wearhouse, founded in 1973, sells discount suits through 1,137 stores, according to its website.</p>
<p>Shares of Jos. A. Bank fell about 2 percent to $41.66 on the Nasdaq on Tuesday. Shares of Men's Wearhouse dropped less than half a percent to $35.24 on the New York Stock Exchange.</p>
<p>(Reporting by Sakthi Prasad in Bangalore; Editing by Christopher Cushing and Gopakumar Warrier)</p><p><a href="http://www.businessinsider.com/jos-a-bank-to-acquire-mens-wearhouse-2013-10#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/jos-a-bank-is-dominating-mens-wearhouse-2013-9Why Jos. A. Bank Is Beating Men's Wearhouse In The Competition For Male Shoppershttp://www.businessinsider.com/jos-a-bank-is-dominating-mens-wearhouse-2013-9
Sat, 28 Sep 2013 15:49:45 -0400Ashley Lutz
<p><img style="float:right;" src="http://static2.businessinsider.com/image/5242f46869beddca0f6cd2de-480-/jos-a-bank-3.jpg" border="0" alt="jos a bank" width="480" /></p><p>It's clear that Jos. A. Bank is beating Men's Wearhouse in the fierce competition for customers.&nbsp;</p>
<p>Jos. A Bank's shares have gained more than 8% in the past six months, while Men's Wearhouse only gained 1.6%.&nbsp;</p>
<p>And while Men's Wearhouse <a href="http://www.businessinsider.com/mens-wearhouse-reports-sales-are-down-2013-9">reported a disappointing outlook</a> for future months, Jos. A. Bank executives <a href="http://seekingalpha.com/article/1676362-jos-a-bank-clothiers-management-discusses-q2-2013-results-earnings-call-transcript">recently said that</a> sales are increasing.&nbsp;</p>
<p>Both retailers market to men who want to look current, but can't afford to shop at Nordstrom. Both face similar challenges in getting cash-strapped customers to go shopping.&nbsp;</p>
<p>So what does Jos. A. Bank have that Men's Wearhouse doesn't?&nbsp;</p>
<p>Those infamous "buy one, get seven free" sales.&nbsp;</p>
<p>"Those promotions are why Jos. A. Bank is getting foot traffic that Men's Wearhouse isn't," said&nbsp;<a href="http://www.linkedin.com/pub/brian-pitera/5/a3b/650">Brian Pitera</a><span>, a principal of consultancy A.T. Kearney. "To compete, Men's Wearhouse is going to have to step up promotions and advertising."&nbsp;</span></p>
<p><span></span>While Jos. A. Bank's promotions sound too good to be true, the brand actually <a href="http://www.businessinsider.com/jos-a-bank-business-model-2012-11">manages to make money</a> by selling the products at higher initial mark-ups than necessary. In other words, Jos. A. Bank builds the cost of free products into the one full-priced suit you purchase.&nbsp;</p>
<p>And once customers are in the store, Jos. A. Bank can count on them making impulse purchases on accessories like ties and belts.&nbsp;</p>
<p>"Critics can hate on Jos. A. Bank's promotions and call them a 'bait and switch,' but they actually have a tried-and-true tactic for getting people in stores," Pitera told us. "That's more than Men's Wearhouse can say."&nbsp;</p>
<p>To get customers back in stores, Men's Wearhouse is going to have to come up with an aggressive promotions strategy, Pitera said.&nbsp;</p>
<p>"Men's Wearhouse doesn't need fancy designers or big names," Pitera said. "What they need is to give customers the value they're looking for right now."&nbsp;</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/best-return-policies-in-retail-2013-9" >10 Retailers That Will Let You Return Anything</a></strong></p>
<p><a href="http://www.businessinsider.com/jos-a-bank-is-dominating-mens-wearhouse-2013-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/jos-a-bank-is-dominating-mens-wearhouse-2013-9Why Jos. A. Bank Is Beating Men's Wearhouse In The Competition For Male Shoppershttp://www.businessinsider.com/jos-a-bank-is-dominating-mens-wearhouse-2013-9
Wed, 25 Sep 2013 10:42:00 -0400Ashley Lutz
<p><img style="float:right;" src="http://static2.businessinsider.com/image/5242f46869beddca0f6cd2de-480-/jos-a-bank-3.jpg" border="0" alt="jos a bank" width="480" /></p><p>It's clear that Jos. A. Bank is beating Men's Wearhouse in the fierce competition for customers.&nbsp;</p>
<p>Jos. A Bank's shares have gained more than 8% in the past six months, while Men's Wearhouse only gained 1.6%.&nbsp;</p>
<p>And while Men's Wearhouse <a href="http://www.businessinsider.com/mens-wearhouse-reports-sales-are-down-2013-9">reported a disappointing outlook</a> for future months, Jos. A. Bank executives <a href="http://seekingalpha.com/article/1676362-jos-a-bank-clothiers-management-discusses-q2-2013-results-earnings-call-transcript">recently said that</a> sales are increasing.&nbsp;</p>
<p>Both retailers market to men who want to look current, but can't afford to shop at Nordstrom. Both face similar challenges in getting cash-strapped customers to go shopping.&nbsp;</p>
<p>So what does Jos. A. Bank have that Men's Wearhouse doesn't?&nbsp;</p>
<p>Those infamous "buy one, get seven free" sales.&nbsp;</p>
<p>"Those promotions are why Jos. A. Bank is getting foot traffic that Men's Wearhouse isn't," said&nbsp;<a href="http://www.linkedin.com/pub/brian-pitera/5/a3b/650">Brian Pitera</a><span>, a principal of consultancy at A.T. Kearney. "To compete, Men's Wearhouse is going to have to step up promotions and advertising."&nbsp;</span></p>
<p><span></span>While Jos. A. Bank's promotions sound too good to be true, the brand actually <a href="http://www.businessinsider.com/jos-a-bank-business-model-2012-11">manages to make money</a> by selling the products at higher initial mark-ups than necessary. In other words, Jos. A. Bank builds the cost of free products into the one full-priced suit you purchase.&nbsp;</p>
<p>And once customers are in the store, Jos. A. Bank can count on them making impulse purchases on accessories like ties and belts.&nbsp;</p>
<p>"Critics can hate on Jos. A. Bank's promotions and call them a 'bait and switch,' but they actually have a tried-and-true tactic for getting people in stores," Pitera told us. "That's more than Men's Wearhouse can say."&nbsp;</p>
<p>To get customers back in stores, Men's Wearhouse is going to have to come up with an aggressive promotions strategy, Pitera said.&nbsp;</p>
<p>"Men's Wearhouse doesn't need fancy designers or big names," Pitera said. "What they need is to give customers the value they're looking for right now."&nbsp;</p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/best-return-policies-in-retail-2013-9" >10 Retailers That Will Let You Return Anything</a></strong></p>
<p><a href="http://www.businessinsider.com/jos-a-bank-is-dominating-mens-wearhouse-2013-9#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/ben-bernanke-buys-suits-at-jos-a-bank-2013-1BEN BERNANKE: Jos. A Bank Is Where I Get My Suits (JOSB)http://www.businessinsider.com/ben-bernanke-buys-suits-at-jos-a-bank-2013-1
Wed, 30 Jan 2013 12:25:00 -0500Ashley Lutz
<p><img style="float:right;" src="http://static5.businessinsider.com/image/50351b9fecad042e48000007-400-300/bernanke-10.jpg" border="0" alt="Ben Bernanke Federal Reserve" /></p><p>Jos. A Bank is <a href="http://www.businessinsider.com/jos-a-bank-revealed-its-worst-nightmare-2013-1">facing a dilemma</a> because its customers aren't responding to the ridiculous deals it offers.</p>
<p>But the struggling retailer has one loyal customer in Federal Reserve Chairman Ben Bernanke.&nbsp;</p>
<p>Bernanke <a href="http://www.time.com/time/specials/packages/article/0,28804,1946375_1947251_1947520,00.html">told Time</a> in 2009 that he buys all his suits there.&nbsp;</p>
<p>Detailing the contents of his wallet, he said: &nbsp;</p>
<p style="padding-left: 30px;"><span>"I've got a D.C. driver's license, my American Express card, a debit card,<strong> a Jos. [A.] Bank card where I get my suits</strong>, I have a health insurance card. And then I have a variety of other cards, phone numbers, United Airlines, frequent flyer. And I have $45...$75...$85. I'm all set."</span></p>
<p>The average Jos. A Bank suit costs around $650 before promotions like <a href="http://www.businessinsider.com/jos-a-bank-business-model-2013-1">"buy one, get two free"</a> suits. Meanwhile, more upscale labels <a href="http://www.saksfifthavenue.com/The-Men-s-Store/Apparel/Sportcoats-Suits-and-Vests/Suits/shop/_/N-52g5h8?FOLDER%3C%3Efolder_id=2534374306443708">like Armani</a> charge thousands of dollars.&nbsp;</p>
<p>The U.S. economic problems Bernanke details in Fed meetings are also part of the reason Jos. A Bank is flailing.&nbsp;</p>
<p><span>"The problems come down to the investment perhaps in&nbsp;a job where income growth is next to nothing," said Brian Sozzi, chief equities analyst at NBG Productions. "Or, for a job interview that they may never call back."</span><span><br /></span><strong style="font-size: 13px; line-height: 1.5em;"></strong></p>
<p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/jos-a-bank-revealed-its-worst-nightmare-2013-1">Jos. A Bank's Worst Nightmare Is Coming True &gt;</a><span style="font-size: 13px; color: #000000;">&nbsp;</span></strong></p><p><a href="http://www.businessinsider.com/ben-bernanke-buys-suits-at-jos-a-bank-2013-1#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/jos-a-bank-business-model-2013-1Why The Core Of Jos. A Bank's Business Model Is Giving Tons Of Suits Away For Free (JOSB)http://www.businessinsider.com/jos-a-bank-business-model-2013-1
Mon, 28 Jan 2013 11:48:00 -0500Sam Ro
<p><img style="float:right;" src="http://static1.businessinsider.com/image/5106a6e9ecad04f619000008-400-/jos-a-bank-1.png" border="0" alt="jos a bank" width="400" /></p><p>In the apparel industry, most companies are known for their clothes.</p>
<p>Suitmaker Jos. A Bank, however, is best known for its outrageous promotions.</p>
<p>But these popular promotions may be losing their effectiveness.</p>
<p>Shares of Jos. A Bank are getting punished today after the company announced a <a href="http://www.businessinsider.com/jos-a-bank-2012-earnings-warning-2013-1">shocking warning </a>regarding its recent financial performance.&nbsp; In their own words:</p>
<p style="padding-left: 30px;">However, many of the promotional items and a large part of our holiday assortment were items that sell best in cold weather and the weather was unseasonably warm. Historically, we have had strength with these types of items, <span style="color: #ff0000;"><strong>but our customers (specifically at our stores) didn't respond as well to our promotional offers as they had in the past</strong></span>. Our customers responded well to our suit promotions during this period, but our non-suit customers responded poorly to our holiday season offerings, even at very low prices on products such as sweaters, outerwear, hats, gloves, scarves, and jackets made of heavier fabrics such as camel's hair and cashmere.</p>
<p>Promotional pricing usually works if the customer believes it will soon go away.&nbsp; However, Jos. A Bank offers similar promotions on a rolling basis.</p>
<p>Perhaps, the customer is finally realizing that they'll never miss out on a Jos. A Bank deal.</p>
<p><span style="text-decoration: underline;"><strong>The Business Model</strong></span></p>
<p>You may have heard of one of their recent promotions: <a href="https://www.youtube.com/watch?v=I45E9HpQejs"><em>Buy 1, Get 7 Free</em></a>.&nbsp; You buy 1 suit at regular price, and they give you 2 more free suits, 2 dress shirts, 2 silk ties, and an <a href="http://www.businessinsider.com/blackboard/android" class="hidden_link">Android</a> smartphone.</p>
<p>More common promotions include 70% off all suits and buy one suit, get two free.</p>
<p>How can a company like this make money?</p>
<p>Three words: <strong>higher initial markups</strong>.</p>
<p>You'll see those three words all <a href="http://www.sec.gov/Archives/edgar/data/920033/000092003312000007/josbfy201110-k.htm">over their regulatory filings</a>.</p>
<p>The markup is the difference between the cost of a good and the price it's sold at.&nbsp; The higher the markup, the more you can discount and still make a profit.</p>
<p>For example, a typical store might sell you a $400 suit and offer 25% off.&nbsp; In Jos A Banks' world, they'd rather price a suit at $1,000 and offer it at 70% off.</p>
<p>Either place you shop, you pay $300 for a suit that might be of identical quality to the one sold at the other place.</p>
<p>But the $1,000 initial price tag gives the perception of higher quality.&nbsp; And the 70% discount gives the illusion of a great deal.&nbsp; Combine those two things and it's no surprise why the bargain-hunting American male would be seduced by Jos A Bank's offering.</p>
<p>This business model had been working for quite a while.&nbsp; Sales and profits have been climbing for years.</p>
<p>And more importantly, the gross profit margin has trended up from 58% to 62%.over the last five full fiscal years.</p>
<p><img src="http://static2.businessinsider.com/image/50b929b069beddd02d00000b-1079-513/jos-a-bank.png" border="0" alt="jos a bank" width="610" /></p>
<p><br />However, any profit margin is no good without sales.</p>
<p>And if the secret of Jos. A Bank's success is out, then they may have lost their ability to differentiate themselves from the competition.</p>
<p><strong>SEE ALSO: <a href="http://www.businessinsider.com/jos-a-bank-revealed-its-worst-nightmare-2013-1">Jos. A Bank's Worst Nightmare Is Coming True &gt;</a></strong></p><p><a href="http://www.businessinsider.com/jos-a-bank-business-model-2013-1#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/jos-a-bank-revealed-its-worst-nightmare-2013-1Jos. A Bank's Worst Nightmare Is Coming True (JOSB)http://www.businessinsider.com/jos-a-bank-revealed-its-worst-nightmare-2013-1
Mon, 28 Jan 2013 09:48:00 -0500Ashley Lutz
<p><img style="float:right;" src="http://static1.businessinsider.com/image/51068cfb6bb3f75452000019-400-/jos-a-bank-abandoned-store.jpeg" border="0" alt="jos. a bank abandoned store" width="400" /></p><p>Jos. A Bank is facing a horrible dilemma as its business model shows signs of cracking.&nbsp;</p>
<p>One sentence from the <a href="http://www.businessinsider.com/jos-a-bank-2012-earnings-warning-2013-1">company's Friday release</a> reveals just how bad the suit shop's problems are.&nbsp;</p>
<p><strong>"</strong><span><strong>Historically, we have had strength with these types of items, but our customers (specifically at our stores) didn't respond as well to our promotional offers as they had in the past,"</strong> the company said.&nbsp;</span></p>
<p><span></span>Jos. A Bank's business model is centered around promotions, particularly its famous <a href="http://www.businessinsider.com/jos-a-bank-business-model-2012-11">"buy one, get seven free"</a> deal.</p>
<p><span>The idea behind the company's marketing is to make customers an offer they can't refuse.&nbsp;</span>In reality, Jos. A Bank relies on <a href="http://www.businessinsider.com/jos-a-bank-business-model-2012-11">higher initial mark-ups before offering discounts</a> to make money.</p>
<p>The higher mark-ups also create the perception of better quality. While other retailers might offer a suit for $600 and offer 25 percent off, Jos. A Bank's $1000 suit with 70 percent off seems like a better investment to customers.</p>
<p>The strategy has worked for years. Until recently, the company reported healthy gains in profit and sales.&nbsp;</p>
<p>But if these extreme promotions can't even hold consumer interest, Jos. A Bank might have to rethink its entire strategy.&nbsp;</p>
<p><span>"It comes down to the investment perhaps in&nbsp;a job where income growth is next to nothing," said Brian Sozzi, chief equities analyst at NBG Productions. "Or, for a job interview that they may never call back."</span></p>
<p>Investors aren't happy with the retailer, either. Shares <a href="http://www.businessinsider.com/jos-a-bank-stock-drop-2013-1">are plummeting</a>&nbsp;after the company's Friday warning.</p>
<p>Sozzi also said that the shopping experience at Jos. A Bank might be turning off consumers.</p>
<p><span>"It could take two to three weeks to receive the suit since it has to be tailored and the store associates also try and sell you add-on items," Sozzi said. "So, that alleged 'great deal' you are getting has hidden costs, in addition to the fact you can't leave that day with the suit."</span></p>
<p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/jos-a-bank-business-model-2012-11">How Jos. A Bank Makes Money Buy Selling 1 Suit And Giving 7 Away For Free &gt;</a></strong><span></span></p>
<h4><strong>Watch Below:</strong> How Zumba Became A World-Famous Fitness Craze<br /><br /></h4>
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<noscript><div>Please enable Javascript to watch this video</div></noscript><p><a href="http://www.businessinsider.com/jos-a-bank-revealed-its-worst-nightmare-2013-1#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/jos-a-bank-stock-drop-2013-1Jos. A Bank Shares Are Getting Destroyed Right Now (JOSB)http://www.businessinsider.com/jos-a-bank-stock-drop-2013-1
Mon, 28 Jan 2013 09:14:00 -0500Sam Ro
<p>Late Friday night, Jos. A Bank released a <a href="http://www.businessinsider.com/jos-a-bank-2012-earnings-warning-2013-1">huge warning</a> regarding its current year's financial results.</p>
<p>Specifically, they said that earnings for the year would be down by 20 percent.</p>
<p>Analysts were looking for a gain.</p>
<p>The stock is down around 16 percent in pre-market trading.&nbsp;</p>
<p><strong>SEE ALSO: <a href="http://www.businessinsider.com/jos-a-bank-business-model-2012-11">How Jos. A Bank Makes Money Buy Selling 1 Suit And Giving 7 Away For Free &gt;</a></strong></p>
<p>From <a href="http://www.marketwatch.com/investing/stock/josb">MarketWatch</a>:</p>
<p><img src="http://static4.businessinsider.com/image/5106873f6bb3f79d4900000a-566-356/screen shot 2013-01-28 at 9.09.40 am.png" border="0" alt="jos a bank" /></p><p><a href="http://www.businessinsider.com/jos-a-bank-stock-drop-2013-1#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/jos-a-bank-earnings-warning-2013-1We Can't Wait To See What The Market Does With Jos. A Bank Today (JOSB)http://www.businessinsider.com/jos-a-bank-earnings-warning-2013-1
Mon, 28 Jan 2013 05:54:00 -0500Joe Weisenthal
<p><img style="float:right;" src="http://static5.businessinsider.com/image/4f8c879becad044216000000-370-277/jos. a. bank.jpg" border="0" alt="jos. a. bank" width="370" height="277" /></p><p>Friday night is a classic time for companies and government to take out the trash &mdash; release some bad news so that people forget about it over the weekend.</p>
<p>Still, 8:05 on a Friday night is a very unusual time to drop a big earnings warning, which is exactly what suits retailers Jos. A Bank did last week.</p>
<p><a href="http://www.businessinsider.com/jos-a-bank-2012-earnings-warning-2013-1">Sam Ro wrote up the warning</a>, which basically had two main points.</p>
<p>2012 net income was going to be about 20% lower than it was in 2011.</p>
<p>Customers stopped responding as much to the company's promotions, and it blamed stuff like the election, the fiscal cliff, and the weather.</p>
<p>We're eager to see how the market reacts to this huge news, as well as the unusual timing of the release.</p>
<p><a href="http://www.businessinsider.com/jos-a-bank-2012-earnings-warning-2013-1"><strong>For more on the earnings warning, see here &gt;</strong></a></p><p><a href="http://www.businessinsider.com/jos-a-bank-earnings-warning-2013-1#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/jos-a-bank-2012-earnings-warning-2013-1Jos. A Bank Announces The Mother Of All Friday Night News Dump Earnings Warnings (JOSB)http://www.businessinsider.com/jos-a-bank-2012-earnings-warning-2013-1
Fri, 25 Jan 2013 20:29:00 -0500Sam Ro
<p><img style="float:right;" src="http://static3.businessinsider.com/image/50b9245669bedd2e1f00000d-400-/screen%20shot%202012-11-30%20at%204.25.08%20pm.png" border="0" alt="jos a bank" width="400" /></p><p>At 8:05 PM ET Friday, discount suit-seller Jos. A. Bank dropped a bombshell.</p>
<p>"[N]et income for fiscal year 2012 is expected to be approximately 20% lower than net income for fiscal year 2011," they wrote.</p>
<p>According to Yahoo Finance, analysts were expecting earnings to climb around 8 percent from last year's earnings of $3.49 per share.</p>
<p>Among other things, management blamed Hurricane Sandy, the election, the fiscal cliff, and warm weather.</p>
<p>Jos. A Bank's sales strategy centers around <a href="http://www.businessinsider.com/jos-a-bank-business-model-2012-11">marking its suits up and then offering abnormally large discounts through outrageous promotions</a>.</p>
<p>However, this model may have revealed its first cracks.</p>
<p>"...our customers (specifically at our stores) didn't respond as well to our promotional offers as they had in the past," they wrote.</p>
<p><strong>SEE ALSO: <a href="http://www.businessinsider.com/jos-a-bank-business-model-2012-11">How Jos. A Bank Makes Money Buy Selling 1 Suit And Giving 7 Away For Free &gt;</a></strong></p>
<p><strong>-------------------------------------------------------<br /></strong></p>
<p>Here's the full release via <a href="http://finance.yahoo.com/q/ae?s=JOSB+Analyst+Estimates">Yahoo Finance</a>:</p>
<p class="first" style="padding-left: 30px;">HAMPSTEAD, Md., Jan. 25, 2013 (GLOBE NEWSWIRE) -- JoS. A. Bank Clothiers, Inc. (<a href="http://finance.yahoo.com/q?s=josb">JOSB</a>) announces that net income for fiscal year 2012 is expected to be approximately 20% lower than net income for fiscal year 2011. Actual results will depend on, among other things, sales for the remainder of the year, expenses and normal year-end processing. Fiscal year 2012 is a 53-week year which will end February 2, 2013; fiscal year 2011 was a 52 week year which ended January 28, 2012.</p>
<p style="padding-left: 30px;">Commenting on the earnings update, R. Neal Black, President and CEO of JoS. A. Bank Clothiers, Inc. stated: "Total company sales for the year will be up, but not enough to offset higher marketing expenses and lower gross margin. We are disappointed that we were not able to drive the sales gains we had expected. The fourth quarter started out slowly, as the first two weeks of fiscal November were negatively impacted by the aftermath of Hurricane Sandy, the distractions created by the presidential election and the uncertainty of the fiscal cliff. Going into the critical holiday selling season, starting on Black Friday, we believed we had a strong marketing and promotional strategy for the period. However, many of the promotional items and a large part of our holiday assortment were items that sell best in cold weather and the weather was unseasonably warm. Historically, we have had strength with these types of items, but our customers (specifically at our stores) didn't respond as well to our promotional offers as they had in the past. Our customers responded well to our suit promotions during this period, but our non-suit customers responded poorly to our holiday season offerings, even at very low prices on products such as sweaters, outerwear, hats, gloves, scarves, and jackets made of heavier fabrics such as camel's hair and cashmere. On the positive side, our Direct Marketing business continues to perform well, with double-digit sales growth so far for the fourth quarter. Despite the disappointing earnings results on a year-over-year basis, the fourth quarter and full year of fiscal 2012 will still be very profitable."</p>
<p style="padding-left: 30px;">"The Company continues to maintain solid cash flows and a strong balance sheet. Additionally, during fiscal year 2012 we achieved several positive accomplishments. We opened our 600th store during the year, opened a total of 46 new stores in fiscal year 2012 and expect to open between 45 and 50 new stores in fiscal year 2013. We have continued to grow our new business initiatives such as our tuxedo rental and big and tall businesses which are starting to gain critical mass. And, for the first time we exceeded the $1 billion annual sales milestone in fiscal year 2012. We continue to remain very positive about the Company's long-term prospects," stated Mr. Black.</p><p><a href="http://www.businessinsider.com/jos-a-bank-2012-earnings-warning-2013-1#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/jos-a-bank-business-model-2012-11How Jos. A Bank Makes Money By Selling One Suit And Giving Seven Away For Free (JOSB)http://www.businessinsider.com/jos-a-bank-business-model-2012-11
Fri, 30 Nov 2012 18:00:00 -0500Sam Ro
<p><img style="float:right;" src="http://static1.businessinsider.com/image/50b9245669bedd2e1f00000d-601-454/jos-a-bank.png?maxX=400" border="0" alt="jos a bank" width="400" /></p><p>Jos. A Bank is the menswear retailer that offers the most ridiculous discounts you've ever heard of.</p>
<p>You may have heard of their newest promotion: <a href="https://www.youtube.com/watch?v=I45E9HpQejs"><em>Buy 1, Get 7 Free</em></a>.&nbsp; You buy 1 suit at regular price, and they give you 2 more free suits, 2 dress shirts, 2 silk ties, and an <a href="http://www.businessinsider.com/blackboard/android" class="hidden_link">Android</a> smartphone.</p>
<p>And they seem to be running these types of promotions all of the time.&nbsp; Two common promotions include 70% off all suits and buy one suit, get two free.</p>
<p>So, how can a company like this make money?&nbsp; <a href="http://www.thereformedbroker.com/2012/11/29/can-someone-explain-this-business-model-to-me/">Reformed Broker Josh Brown</a> posed this question (of course rhetorically).</p>
<p>Three words: <strong>higher initial markups</strong>.</p>
<p>You'll see those three words all <a href="http://www.sec.gov/Archives/edgar/data/920033/000092003312000007/josbfy201110-k.htm">over their regulatory filings</a>.</p>
<p>The markup is the difference between the cost of a good and the price it's sold at.&nbsp; The higher the markup, the more you can discount and still make a profit.</p>
<p>For example, a typical store might sell you a $400 suit and offer 25% off.&nbsp; In Jos A Banks' world, they'd rather price a suit at $1,000 and offer it at 70% off.</p>
<p>Either place you shop, you pay $300 for a suit that might be of identical quality to the one sold at the other place.</p>
<p>But the $1,000 initial price tag gives the perception of higher quality.&nbsp; And the 70% discount gives the illusion of a great deal.&nbsp; Combine those two things and it's no surprise why the bargain-hunting American male would be seduced by Jos A Bank's offering.</p>
<p>All it took was a little psycho-mathematical salesmanship.</p>
<p>And how's business at Jos A. Bank?</p>
<p>Well, their recent quarter was a bit <a href="http://www.marketwatch.com/story/jos-a-bank-clothiers-net-drops-11-on-markdowns-2012-11-28">disappointing</a>.&nbsp; But long-term, business has been good.&nbsp; Sales and profits have been climbing for years.</p>
<p>And more importantly, the gross profit margin has trended up from 58% to 62%.over the last five full fiscal years.</p>
<p>So, that's how they make money.</p>
<p><img src="http://static2.businessinsider.com/image/50b929b069beddd02d00000b-1079-513/jos-a-bank.png" border="0" alt="jos a bank" width="610" /></p><p><strong>SEE ALSO:&nbsp;<a href="http://www.businessinsider.com/the-15-best-housing-markets-for-the-next-five-years-2012-11" >The 15 Best Housing Markets For The Next 5 Years</a></strong></p>
<p><a href="http://www.businessinsider.com/jos-a-bank-business-model-2012-11#comments">Join the conversation about this story &#187;</a></p> http://www.businessinsider.com/jos-a-bank-down-more-than-8-2012-3Shares Of Suit Seller Joseph A. Bank Tank After Weak First Quarter Saleshttp://www.businessinsider.com/jos-a-bank-down-more-than-8-2012-3
Wed, 28 Mar 2012 12:54:00 -0400Ben Duronio
<p><img style="float:right;" src="http://static6.businessinsider.com/image/4f732a916bb3f7ab46000023-400-300/josb.png" border="0" alt="JOSB" width="400" height="300" /></p><p>With below estimate sales results for 2011, Men's apparel company JoS. A. Bank's stock is now down over 8%.</p>
<p>Closing yesterday at 54.48 and now sitting at 49.99, it looks as if JOSB has fallen off a cliff.</p>
<p>Thomson <a class="hidden_link" href="http://www.businessinsider.com/blackboard/reuters">Reuters</a> expected 2011 revenue of $988.7, but despite a 14% rise in sales they received just $979.9 million in revenue.</p>
<p>In addition to missing revenue estimates, JOSB's CEO, Neal Black, explained that "the first quarter of 2012 has started out more slowly than we had planned." The news of the missed estimates, although they did match their earnings per share estimates, combined with the CEO's statements have led to the poor stock performance this morning.</p><p><a href="http://www.businessinsider.com/jos-a-bank-down-more-than-8-2012-3#comments">Join the conversation about this story &#187;</a></p>